John Lewis Partnership Annual Report and Accounts 2015

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John Lewis Partnership plc Annual Report and Accounts 2015

Our Partnership model

As the largest employee-owned business in the UK, the Partnership has its own distinctive culture. This culture gives us a competitive edge. It’s safeguarded by our governance and accountability structures, which protect and promote co-ownership, democracy and Partner representation.

Our Constitution and governing bodies Our Constitution

Our governing bodies

Our written Constitution is the bedrock of our Partnership. It doesn’t just establish our Partnership’s principles, it also sets out the way in which we, as Partners, should operate. Although the Constitution has been revised and refreshed over the years, it retains a direct connection with the fundamental principles established in 1929. At the heart of the Constitution, Principle 1 sets out the Partnership’s ultimate purpose, and the responsibilities and rewards of owning a successful business.

We protect and promote our Partners, co-ownership model and democracy through our three key Partnership governing bodies: the Partnership Council, the Chairman and the Partnership Board.

The Partnership Council

Partnership Council is made up of Partners representing every area of the business and has three roles:

a to hold the Chairman to account (i.e. allowing our Partners to ask our Chairman to explain his actions);

a to make some key decisions (such as our review of pensions);

7 6 5 1 4

Throughout this year’s Annual Report and Accounts, we show examples of how our principles have been brought to life in the Partnership today. See page 20.

2 3 a to influence policy.

The Chairman The Chairman is ultimately responsible for the Partnership’s commercial performance. He reports upon and answers questions about this twice a year before the Partnership Council. The Chairman also chairs the Partnership Board and leads the delivery of the Partnership Business Plan.

The Partnership Board

The Partnership Board has ultimate responsibility for developing and reviewing major policy and allocating the Partnership’s financial and other resources. A large part of its role is keeping the Partnership true to its principles, both in terms of its commercial progress and its distinctive co-ownership objectives.

Find out more about the roles, responsibilities and actions of these three governing bodies and their supporting sub-committees in the Governance section (pages 82 to 119).

The Chairman

Partnership Board

Provides governance and assurance to Entrusts management of the business to Delegates management authority to

Partnership Council

The Partnership Council has the power to dismiss the Chairman. At the last vote in March 2015 on the Chairman’s leadership, there were no ‘no’ votes and no abstentions.

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